International Agreements

JSC Georgian State Electrosystem actively cooperates with its neighboring TSO-s in Turkey, Russia, Azerbaijan and Armenia in field of ensuring electricity export, import, transit and emergency assistance. Moreover GSE has a relationship with several TSOs in EU in order to share experience and harmonize Georgian regulations with EU requirements in field of organizing of electricity market structure and ensuring safety and security of electricity supply.

At the same time GSE is involved in process of researching the opportunities to develop North-East energy corridor with Russia, Armenia and Iran.

GSE has signed the relevant agreements with the TSO’s of neighboring countries to ensure the parallel work with their energy systems.

Georgia and the Republic of Turkey have signed International Agreements in field of energy cooperation and operation of the relevant interconnection line.

In addition, GSE is actively cooperating with international financial institutions:

  • On December 21st, 2017 the Ministry of Economy and Sustainable Development of Georgia, Georgian State Electrosystem JSC and KfW signed a Financing and Project Implementing Agreement for Extension of the Georgian Transmission Network Program (hereinafter referred to as the Program).

    The EU through its Neighborhood Investment Facility (NIF) provided a EUR 9,9 mln (approximately GEL 28 mln) grant to support the Program co-financed by KfW. The aim of the Program is to provide grid infrastructure for promotion of hydropower plants net integration and increase transmission capacities, including cross-border trade. Part of the Grant will finance part of construction of Tskaltubo-Akhaltsikhe-Tortum OHL and Technical Assistance component of the Program.
  • On November 1st , 2017 Georgian State Electrosystem JSC and KfW signed a Financing Agreement on allocation of a EUR 910,000 grant approved by the German Government within the Open Program Extension of the Transmission Network II.

    The above grant will finance preparatory works for the new loan of EUR 100 mln, particularly: preparation of Feasibility Study and Environmental and Social Impact Assessment, exploration of opportunities for utilization of renewable energies and technical assistance for implementing additional activities. The loan itself will finance projects for construction/rehabilitation of transmission lines and substations in Racha-Lechkhumi, Qvemo Svaneti and Kakheti Regions.

    The Program envisages extension of the transmission grid through construction/rehabilitation of transmission lines and substations in Georgia, and thus, further increase of reliability of power supply of the country as well as facilitation of export-import activities.  Implementation of the Projects will enter active phase in 2019, main works are to be completed by the end of 2020.
  • On April 13th, 2017 the Government of Georgia and KfW signed Loan Agreement in the amount of EUR 125 Million, which will finance implementation of the Open Program Extension of the Transmission Network - II.
  • On December 19th, 2016 Georgian State Electrosystem JSC (GSE) and the German Development Bank (KfW) signed Financial Agreement, which envisages allocation of Grant in the amount of EUR 1,200,000 by the German Government through KfW to finance preparation of feasibility study and preliminary design within the Open Program Extension of the Transmission Network - II.
  • On December 19th, 2016 GSE and KfW signed Financial Agreement, which foresees allocation of Grant in the amount of EUR 200,000 by the German Government through KfW to finance preparation of feasibility study and preliminary design within the Energy Interconnection North-South Project.